 "Bhavish Aggarwal's Ola Electric IPO worth Rs 5,500 cr to open on August 2")
Bhavish Aggarwal’s first-ever initial public offering in Ola Electric will open on August 2, 2024, worth Rs 5,500 crore. The bidding for anchor investors will be open for a day on August 1. The price band of the issue will be announced on Monday, July 29.
The company’s IPO is a combination of fresh issue and offer for sale of 84.9 million shares. Compared to the company’s earlier filing, the offer for sale has come down from 95.2 million.
Aggarwal is offering 37.9 million of his shares for sale, lower than the 47.4 million mentioned in the firm’s Draft Red Herring Prospectus.
After Aggarwal, Softbank Vision Funds II is the single largest seller of its shares at 23.8 million.
The company in the Red Herring Prospectus said that it will be using Rs 1,600 crore raised in the IPO for research and development (R&D) and about Rs 1,227.6 crore for the expansion of its manufacturing capacity, Gigafactory in Tamil Nadu.
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“We undertake R&D activities in India, the UK, and the US focused on designing and developing new EV products and core EV components, such as battery packs, motors, and vehicle frames. In addition, we operate a BIC in Bengaluru, India, focused on developing cell technology and manufacturing processes for our forthcoming cell manufacturing operations at the Ola Gigafactory,” said the company in its RHP.
The company will also be using Rs 800 crore to repay debt in full or part.
The company said that it has a total of 4,011 employees, of which 907 were in the R&D segment. “We also require sufficient talent in areas such as software development. Our employee attrition rate was 44.25 per cent and 47.48 per cent in financial years 2024 and 2023 respectively,” said the company’s RHP.
The RHP also showed that when it comes to its suppliers from international players, China seems to dominate the chain. The company’s international suppliers come from China, South Korea, Singapore, Malaysia, Thailand, and others.
Ola Electric had revenue from operations at Rs 5,009.8 crore for FY24. This more than doubled compared to the firm’s revenue of Rs 2,630.9 crore in FY23. The loss for the firm has also gone up.
Ola reported a loss of Rs 1,584.4 crore in FY24, up from the loss of Rs 1,472 crore in FY23.